Accell Group has announced its results for the first half of 2018 and simultaneously provided an update on the implementation of its new strategy. The company has singled out the following areas of not from its H1 2018 results:
- Stable turnover of €636 million (+0.3% year on year; +2.7% at constant exchange rates) on back of strong demand for e-(performance) bikes. Lower sales in the Benelux and North America regions.
- Added value up 120 bps (basis points on the company’s share price) at 30.1%, largely due to positive currency effects and to a lesser extent lower logistics costs and lower purchasing prices for materials.
- Operating result 10.1% lower at €42.7 million, due to higher operating costs of which €2.5 million represented extraordinary expenses.
- Working capital came in higher on the back of higher trade receivables and lower trade payables.
- Net result of €25.5 million down -2.9% year on year.
Ton Anbeek, Chairman of the company’s Board of Directors said, “For us, 2018 is clearly a year of transition, a period we will use to smartly reorganise our group and a period in which costs will outpace any concomitant income. Over the past six months, we have strengthened our management team in a number of crucial places and created a mix of young talent and solid experience, which has also created a completely different dynamic and added new energy.
“With this new team, we will accelerate the implementation of our transition and the roll-out of our new strategy. In addition, over the past few months we have made real progress on the priorities defined within each of our strategic thrusts. We have a huge amount of innovative power within the group, which puts us in a position to surprise the market time and time again.”
Anbeek continued, “We prove that once again with the introduction of the Haibike FLYON, which sets the standard for a next generation of e-mountain bikes, plus the Lapierre E-Road bike Xelius, which enables us to open up the e-road bike market segment once and for all. The bicycle is developing at high speed constantly opening up more new markets thanks to the smart application of new technologies.
“We have the great advantage of scale and a promising pipeline of innovations, which in combination with a more integrated and effective group will be the driver of our growth in the years to come.”
A release from Accell Group noted that ‘The group’s transition is moving full steam ahead; priorities have been set and we have launched various initiatives within each of our strategic thrusts… The central management of omni-channel, e-commerce and supply chain will be structured in consultation with the regional management teams. The development of the new e-commerce platforms is well on track.’
Accell Group added that… ‘the regional organisations themselves are consistently increasing their focus on the perfect execution of plans and can now also choose from the full range of the group’s brands and models. We have made a start on the centralisation of the management of the parts and accessories operation, readying the business for a new growth phase and more effective use of synergies in procurement, sales and IT. In addition, we have made a number of significant steps to reduce complexity and standardise product platforms.’
Beeline Bikes, which Accell Group acquired earlier this year, has now been fully integrated into the company’s North American operation; and Accell is now making preparations for the introduction of this mobile bike service in Europe.
‘Beeline’s mobile technology platform offers an innovative solution for all our partners in the specialist retail trade, a solution that provides ease and personal service for consumers.’
Management agenda and outlook
In light of the refined strategy ‘Lead Global. Win Local’, 2018 is seen as a significant year of transition, largely marked by a reduction of complexity and centralised management in areas such as e-commerce, innovation, supply chain and IT.
Accell Group added that it will also be actively looking for additional increases in scale via targeted acquisitions that are a ‘good match with the new strategy’.
Accell Group expects to see continued turnover growth in the second half of 2018, driven by higher sales of e-bikes and high-end regular bikes. Working capital at year-end 2018 is expected to see a major improvement, compared with end-June 2018. On the basis of these developments, the group expects ‘to record an increase in net turnover and a higher operating result for the full year 2018, barring unforeseen circumstances.’
Accell Group focuses internationally on the mid-range and higher segments of the market for bicycles and bicycle parts and accessories. The company has leading positions in the Netherlands, Belgium, Germany, Italy, France, Finland, Turkey, the United Kingdom and the United States. In Europe, Accell Group claims market leadership in the bicycle market, as measured in turnover.
Accell Group’s best known brands are Haibike (Germany), Winora (Germany), Batavus (Netherlands), Sparta (Netherlands), Koga (Netherlands), Lapierre (France), Ghost (Germany), Raleigh and Diamondback (UK, US, Canada), Tunturi (Finland), Atala (Italy), Redline (US), Loekie (Netherlands) and XLC (international). Accell Group and its subsidiaries employ approximately 3,000 people in eighteen countries worldwide.
The company has production facilities in the Netherlands, Germany, France, Hungary, Turkey and China. Accell Group products are sold in more than 70 countries. The company’s head office is located in Heerenveen (the Netherlands). Accell Group shares are traded on the official market of Euronext Amsterdam and are included in the Amsterdam Small Cap index (AScX). In 2017, Accell Group sold around 1.3 million bicycles and recorded turnover of over €1 billion.
